Apple shareholders met at the company's Cupertino, California headquarters today to vote on six proposals and voice questions directed at Apple's executive team, followed by comments and a question and answer session handled by the company's chief operations officer Tim Cook.

Among the proposals were two regular corporate approval votes, one to approve the company's existing seven board members (William Campbell, Millard Drexler, Albert Gore, Steven Jobs, Andrea Jung, Arthur Levinson and Ronald Sugar) and a second for ratification of the firm's appointment of Ernst & Young LLC as its independent registered public accountant for the 2011 fiscal year. Both passed in the preliminary vote count.

An advisory vote on executive compensation also passed, with an advisory vote stipulating a 1 year frequency for votes on executive compensation.

Two shareholder proposals were also brought forward, one pertaining to succession planning, which did not pass in the preliminary tally, and a second regarding minority voting that was approved in the preliminary vote count. That measure, argued by CALPERS, asked for transparency and accountability in the voting process for director nominees.

Final votes will be published by Apple after all ballots cast at the meeting are counted. The preliminary vote covers ballots submitted prior to the event. Following the formal vote, the company conducted a question and answer session involving the roughly 400 attendees, about 300 of whom security reported were sat in the main theater area, with the remainder being pushed into an upstairs overflow room.

Cook's Comments

Cook handled a question and answer session after providing an overview of Apple's accomplishments over the past year. He noted that Apple's Mac sales were up 31 percent to 14 million computers, twice what the company was selling just three years ago. He reiterated that Apple has outgrown the overall PC industry for every quarter over nearly five years now, later remarking that the 375 million PCs sold worldwide indicate Apple has plenty of room for additional growth.

Cook added that in education, Apple has been number one in notebooks for three years, a position that is not just limited to the US, as the company has also led European sales in education for the last four years.

In mobile devices, Cook pointed out that Apple doubled its iPhone business over the last year to 40 million units, pointing out that not many companies take a 20 million unit business and double it, nor is it easy to do, before adding that Apple had also launched an entirely new business with iPad, generating sales of 7.6 million in the first month, sales that represented $5 billion in revenue.

Cook also said that over the last year, Apple had added 44 retail stores, hit a new milestone of 10 billion downloads in the iOS App Store, sold 160 million iOS devices, and in the December quarter, had sold a million Apple TVs, which is "not bad for a hobby." He also pointed out to shareholders that Apple's stock is up about 70 percent from a year ago, compared to 20 percent growth in the S&P average.

Shareholder Q&A

The first question pertained to Apple's vast and growing cash reserves, which shareholders have regularly pointed out could be used to distribute a dividend. This time, the question acknowledged the company's interest in having a strategic reserve of cash, but asked whether Apple had any ceiling in mind when a stockpile would overflow, triggering a distribution to shareholders. Apple's chief financial officer Peter Oppenheimer stated Apple wanted to hold the cash "to do great things," and stated the company has no ceiling in mind, but will continue to monitor the situation as the company's cash pile grows. He added that the cash indicates Apple is doing all the right things.

Another shareholder addressed competition from Google's Android platform, asking what the company was doing to secure its inventions and prevent losses in its supply chain. Cook pointed out that this year, Apple became the second largest phone maker after Nokia, surpassing RIM.

Cook also noted that Apple's iOS focuses on an integrated experience, contrasted with Android, which "turns the user into the system integrator" and noted the platform fragmentation that is resulting from each Android licensee adding its own layers of differentiation in both hardware and the user experience. Cook also said Apple could have sold more iPhones if it had been possible to build more, describing the company's competitive position in saying, "we like our hand."

Speaking directly to shareholder worries that Apple was simply letting others steal its inventions, Cook said, "there's a lot of lawsuits going around," and adding that "nobody likes to have their stuff stolen." Cook also added that Apple takes significant precautions in guarding access to its intellectual property, although admitting that in a couple of cases, "things go missing," a comment that elicited some laughs in alluding to the leak of iPhone 4 last summer.

Phil Schiller, Apple's VP of worldwide marketing, added, "we love competition," adding that Apple's success is so great that everyone else is trying to design an iPhone, and now and iPad.

Android the next Windows?

Bringing up Android again, another question asked if Apple saw parallels between the broadly licensed Android and the competitive threat of Windows back in the early 90s. Schiller answered that the situation is completely different today, as Apple is a different company, with different products, adding that it has learned a lot from looking at its history, and noting that many of the people who were at Apple during that previous period are still there, including Schiller himself.

Schiller added that back then, Apple was competing against companies like Compaq and IBM, which are not around today in the PC business, unlike Apple. He also pointed out that in "post PC" devices, "integration is far more important," than it was among desktop PCs. Apple is also the undisputed leader, adding that Apple was now well ahead of its competitors in software with its App Store, an area it formerly lagged behind on with the Mac.

Schiller said that some in the press like to equate Android with Windows because it's an easy comparison to make, but that "the analogy doesn't fit."

He also noted that enterprise features, and subsequent rapid adoption by businesses, are also being led by iOS, again in stark contrast to the history of the Mac, where the entrenched DOS world was difficult to compete against. Reiterating that 88 percent of the Fortune 100 are testing or actively deploying iPhones, and that 80 percent are already doing the same with iPad, Cook noted that "we never guessed we would see such penetration" among a segment of the market usually resistant to completely new products.

Android input plugins for iOS?

A third major question involving Android related to whether Apple would roll out OS plugins that allowed users to change how devices work, beyond just adding apps, bringing up Android's input manager plugins that allow users to install alternative keyboard types or voice recognition.

The question was fielded by Apple's leader of iOS development Scott Forstall, who pointed out that Apple has, in the iOS App Store, "created the best economy in software in the history of the planet," and noted that Apple is very careful not to create problems that might jeopardize that position. He noted that backwards compatibility is something the company takes very seriously, mentioning that users have been able to use their apps across four major releases of the system.

Forstall also referenced the security of iOS, mentioning its app curation and sandbox design that prevent viruses or malware from "stealing contacts," adding that adding operating system plugins is "very tricky" and saying the company is "very cognizant of the dangers" in allowing unsustainable customization that causes problems moving forward, specifically noting issues related to Mac OS 7.

Apple and gaming

A young man asked whether Apple sees console gaming as a potential market, given that Microsoft and Sony haven't released new generations of their gaming devices. Cook replied that "we are in the gaming business" with iPod touch, and that iPhone and iPad users are also downloading lots of games.

"We found ourselves in the broader gaming market. We think its a good place to be," Cook said, before adding, "Where we are at now."

Another shareholder asked about Apple's business relationship with Liquid Metal, which it licenses technology from; Cook noted that Apple has bought a variety of small companies, mainly for their engineering ability and people skills, but refused to comment anything specific about any of them.

"Misinformation" about Apple's publisher subscription plans

Another issues raised was Apple's 30 percent cut of publisher subscriptions, compared to Google's reported 10 percent cut. Schiller noted that "there's a lot of misinformation" about the subject, adding that according to Google's public information, it plans to take a 10 percent cut only of web sites that use its subscription fulfillment system, and will charge the same 30 percent cut within apps, just like Amazon and just like other software app stores do.

Oppenheimer added that Apple continues to run the App Store at "just a little over break even."

A second question about Apple's cut for publishers asked whether newspapers can afford to give up 30 percent of their revenues, to which Cook answered that the split Apple shares only applies to new customers, and that publishers can bring their existing subscribers content through App Store titles at no cost, managing that themselves. Apple's executives made it clear that the 30 percent cut is not the issue, and that the real controversy is related to customer information.

A final question came from a woman asking if Apple's executives had seen Mike Daisey's monologuist play, "The Agony and the Ecstasy of Steve Jobs," which references the role of Steve Jobs and Apple's activities in China . Cook dismissed the play, saying "if it's not on ESPN or CNBC, I don't see it," but said he could comment on China.

Cook said in everything from worker safety to making processes environmentally friendly "we have the highest standards," adding that Apple is the most transparent in its auditing and reporting than any other company, reporting actual problems and taking real action.

Cook also noted that Apple's policies apply not just to the more reputable companies it does direct business with, but that its auditing is "going deep into the supply chain" where the real problems are. He described problems such as workers from countries like Indonesia who are recruited by layers of companies that each charge fees that add up to be a large amount of the workers' wages, or fake young workers' birth certificates to skirt employment laws.

Apple has terminated relationships with suppliers who "just don't get it," Cook said, while working to resolve problems with others who appear to have made honest mistakes. Cook noted that Apple's actions "will help more than Apple," because the company is pushing to change how business is done.

It had forced reimbursements of $300 million to workers and has involved governments to get involved and understand the issues. "We are doing the heavy lifting," Cook said. "I am really proud of the changes we have forced in."

Cook was then encouraged again by the woman to see "The Agony and the Ecstasy of Steve Jobs," because she wanted him to see how Jobs was being portrayed as a man who traveled to China and observed conditions there. To this Cook answered, "I don't need to see a play. I know Steve Jobs," adding that Apple's executives have also been there, interviewing workers and not just management, and opening lines of communications that allow workers to report problems independently.

Google was working on Android for portable devices WAY before anyone at Apple even DREAMED about the iPhone - only trouble was the dang vacuum tubes kept blowing out.

That's not true at all. Apple built a tablet device before Google's BlackBerry knock-offs and up until Apple got into the phone business.

Additionally, I don't know about anyone else here but I consider the Ipod to be a portable device. In every other market google is in other than search they were always nothing more than the avoid if you can alternative.

Google was working on Android for portable devices WAY before anyone at Apple even DREAMED about the iPhone - only trouble was the dang vacuum tubes kept blowing out.

So not true. Google bought Android in 2005 and it remain vaporware until late in 2007 when google show off a demo that was A BLACKBERRY OS CLONE.

Apple started working on the iphone in 2004 and released a FULL product in early 2007. Android is nothing but a clone of the most popular OS at a given time. The only thing that keeps it from being sued to the ground is the "open" nature of it.

LOL I can almost hear the crying from those geek forums ...
"ANDROID IS NOT A COPY OF IOS !!!!1111"

lol fyi It is.

Andoid "back in the day" before the iPhone was introduced was meant to compete with Blackberry and their OS was reflected in that.

Of course, then came Apple with their touch-screen and it was back to the drawing board (or copy-machine) to get Android to a similar level.

The hypocrisy of the Android arena still amazes me. When the iPad was introduced not even a year ago, everyone criticized the form-factor and usefulness of such a device. Now those same fanboys get all wet thinking about what is essentially a clone of the iPad from the likes of Motorola's XOOM to the Galaxy, and the oversized-screen Android phones. It's almost as if they simply brushed-under the rug all the hateful comments they made about Apple's tablet.

When Apple does it, phandroids rip it apart. But hey, when Android does the exact same thing, suddenly it's the best thing since sliced bread.

So not true. Google bought Android in 2005 and it remain vaporware until late in 2007 when google show off a demo that was A BLACKBERRY OS CLONE.

Apple started working on the iphone in 2004 and released a FULL product in early 2007. Android is nothing but a clone of the most popular OS at a given time. The only thing that keeps it from being sued to the ground is the "open" nature of it.

I don't see Android as competition, I see it serving cheap markets. iPhone is top of the line, Android is everything else. I don't see anything wrong with that, at all.

Now when people make comments like "Android device X beats iPhone," they're wrong before they've even defined which device.

And I must say, who are these money hungry shareholders who just want their check? Take your money and go invest in someone else. I have the utmost respect for a company that uses its profits to further their success (or in Apple's case, create new successes out of thin freaking air), rather than pissing it into the wind (aka shareholders pockets).

And I must say, who are these money hungry shareholders who just want their check? Take your money and go invest in someone else. I have the utmost respect for a company that uses its profits to further their success (or in Apple's case, create new successes out of thin freaking air), rather than pissing it into the wind (aka shareholders pockets).

I'm a very happy AAPL shareholder and I just don't get those other shareholders that want their dividend check. I agree, if you don't like it, pack-up and leave Apple. No one is forcing you to keep your ridiculously well-performing AAPL stock. Sell it for what is most likely a very handsome profit and move on.

Apple is a technology company. Any person with a shred of intelligence would know that the industry moves and changes so quickly, that those not in the position financially to weather the storm and buy new copy-machines to imitate Apple's products will end up falling hard on their face.

There are plenty of other companies out there that are very flat in terms of stock prices but do pay out quite well with dividends. Move along, nothing to see here for you folks.

AppleInsider: "Cook was then encouraged again .... to see [the play] "The Agony and the Ecstasy of Steve Jobs," because she wanted him to see how Jobs was being portrayed as a man who traveled to China and observed conditions there.

To this Cook answered, "I don't need to see a play. I know Steve Jobs.""

Very Jobsian.

I think I am beginning to like this Tim guy.

Tim Cook is gay, believes in climate change, and cares deeply about racial equality. Deal with it (and please spare us if you can't).

A second question about Apple's cut for publishers asked whether newspapers can afford to give up 30 percent of their revenues, to which Cook answered that the split Apple shares only applies to new customers, and that publishers can bring their existing subscribers content through App Store titles at no cost, managing that themselves.

I wish we would get more clarity as to exactly what this means. It reads as though if you get your sub from the publisher in the first place, you never give a cut to Apple as long as you subscribe, or re-up that sub. But, does it? If it does, then what some are complaining about really doesn't exist there. The only thing I'd like to see changed is to put the link back to the store's site for buying books.

"Cook answered that the split Apple shares only applies to new customers"

Actually, Cook answered that the 70/30 split only applies to customers who subscribe through in-app purchasing. Apple gets no revenue from subscribers (existing or new) who sign up through the publication's web site. It's a small distinction, but I think an important one.

Android is nothing but a clone of the most popular OS at a given time. The only thing that keeps it from being sued to the ground is the "open" nature of it..

Actually, Android IS a clone in more ways than one. It wasn't enough to simply steal the iPhone UI. Google ripped off the Sun mobile JVM, changed things here and there just enough to get past the licensing requirements, and then marketed the result as Android.

Are you telling me that Apple hadn't been working on the iPhone for more than 2 years?

The Nexus One was released in 2010.

How can you sit here and argue that Google had Android in its current form before Apple even began to start working on the iPhone?

The iPhone and Apple have come a long way. Apple has constantly revolutionized the way people listen to music and interact with others. Their mobile handset, the iPhone, has been the forerunner in mobile technology for years now, but it seems that they have forgotten their roots. The iPhone hasnt always been that sleek and super glossy icon of consumer tech that it has definitely become. So lets take a look at the evolution of our favorite handset.

2005: The Moto Rokr in all its glory!

In 2oo5 Motorola collaborated with Apple to create the Moto Rokr. Although this candy barstyled device certainly got its looks from Motorola, this beauty does have the Apple signature-white backing, like the iPods of the day. This was the first phone with iTunes, but it was short-lived. Its almost comical that, since then, Motorola and Apple have been competitors especially recently, with the Motorola Droid and the soon-to-launch Droid X. I almost find it hard to believe that this was a top phone in 2005. Its a good thing Apple opted for a different style.

The iPhone hasnt always been that sleek and super glossy icon of consumer tech that it has definitely become. So lets take a look at the evolution of our favorite handset.

2005: The Moto Rokr in all its glory!

In 2oo5 Motorola collaborated with Apple to create the Moto Rokr. Although this candy barstyled device certainly got its looks from Motorola, this beauty does have the Apple signature-white backing, like the iPods of the day. This was the first phone with iTunes, but it was short-lived. Its almost comical that, since then, Motorola and Apple have been competitors especially recently, with the Motorola Droid and the soon-to-launch Droid X. I almost find it hard to believe that this was a top phone in 2005. Its a good thing Apple opted for a different style.

Your knowledge of the history of this is so seriously off-base that it's pointless to try and explain it all.

If you care one whit about facts, you'll follow up and find out more.

My bet is, you probably won't....

Tim Cook is gay, believes in climate change, and cares deeply about racial equality. Deal with it (and please spare us if you can't).

Your knowledge of the history of this is so seriously off-base that it's pointless to try and explain it all.

If you care one whit about facts, you'll follow up and find out more.

My bet is, you probably won't....

Since your statement is so vague, I wonder what exactly you're disagreeing with him over. Eldar Murtazin has a nice piece on the history of the iPhone that I read just the other day that backs up his comment. http://www.mobile-review.com/article-en.shtml

One would think that the vacuum tube tag line would have made you realize he was joking.

Nuance and sarcasm are lost among a many here, based on the responses. They have to be told... this is a joke, or a post must be marked "sarcasm", etc. before it registers.

And, there is also appreciation of the history of technology. Transistors replaced vacuum tubes, and transistors were in turn replaced by silicon wafers and the latter are further being challenged by newer technologies with advances in nanotechnology.

Vacuum tubes were practically out ca 1960s, while Google is a very young company of the New Millenium (21st century). More kudos to the "vacuum tube" poster if (s)he aware of these technological nuances.